European industrial response to peak-load pricing of electricity, with implications for U.S. energy policy
Purchase
Purchase Print Copy
| Format | List Price | Price | |
|---|---|---|---|
| Add to Cart | Paperback24 pages | $20.00 | $16.00 20% Web Discount |
Industrial customers in several Western European countries have faced time-of-day and other peak-load electricity rates for several decades. Examining adjustments in electricity use on an industry-by-industry basis gives some insight to response that might be observed in the United States under similar price incentives. Evidence is found that several manufacturing industries can, in the aggregate, make significant shifts from peak to off-peak hours. Such shifts would permit U.S. electrical utilities to generate electricity more efficiently and, in the long run, construct a mix of generating facilities that offers a lower combined operating and capital cost. Estimates suggest that if U.S. manufacturing customers show the same degree of response to peak-load pricing as their European counterparts, between $0.4 and $1.8 billion in utility operating costs will be saved per year; and in the long run between $1.3 and $2.6 billion in combined capital and operating costs.
This report is part of the RAND Corporation Paper series. The paper was a product of the RAND Corporation from 1948 to 2003 that captured speeches, memorials, and derivative research, usually prepared on authors' own time and meant to be the scholarly or scientific contribution of individual authors to their professional fields. Papers were less formal than reports and did not require rigorous peer review.
This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.
The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.